BAE Receives $40 M for Naval Canister Production

BAE Systems received a $40 million contract from the U.S. Navy to produce canisters used to store, transport and launch a wide range of missiles.

The contract has the potential for additional annual contract awards. If all options are exercised, the total value could exceed $400 million.

“BAE Systems has a long-standing canister production franchise built on delivering world-class canisters to the U.S. Navy, helping our Sailors accomplish their missions more safely and effectively,” said Chris Hughes, vice president and general manager of Weapon Systems at BAE Systems. “We look forward to supporting the Navy and our Sailors for many years to come.”

The contract includes the production of four different canisters, each of which is designed to complement a specific missile system. These include Mk 14 canisters for tomahawk missiles, Mk 21 Mod 2 canisters for SM-3 missiles, Mk 21 Mod 3 canisters for SM-6 missiles, and Mk 25 canisters for ESSM missiles.

The canisters are used as a launch platform and as shipping and storage containers for specific missiles. The U.S. Navy uses them in both the Mk 41 and Mk 57 Vertical Launching Systems (VLS), which are also produced by BAE Systems. The Mk 41 and Mk 57 VLS are below deck missile launchers capable of launching missiles at multiple naval warfare threats including anti-air, anti-submarine, ship self-defense, land attack and ballistic missile defense missions.

The contract’s period of performance is 2013 through 2019 if all options are exercised. The majority of the work will be performed at the company’s Aberdeen, South Dakota facility.